ConocoPhillips (NYSE:COP) will exit Indonesia after agreeing to sell its assets in the country to local independent Medco Energi (IDX:MEDC) for $1.355 billion. The move could be a blow to Indonesia’s image in the longer run as the nation tries to attract foreign investment, but analysts generally see the deal as positive.
Medco Energi, an ambitious Indonesian independent oil and gas company, is preparing to raise capital that will help fund acquisitions. Significantly, Medco Energi is reportedly keen to bid for ConocoPhillips’ share of the giant onshore Corridor gas block in Indonesia estimated to be worth more than $1.5 billion.
Indonesia’s Medco Energi and Spain’s Repsol are reportedly keen to bid for ConocoPhillips' share of the giant onshore Corridor gas block in Indonesia estimated to be worth more than $1.5 billion.
Repsol and partner Petronas plan to take a final investment decision (FID) on the giant Kali Berau Dalam (KBD) gas discovery on the Sakakemang Block in Indonesia next year with full production targeted by 2027.
ConocoPhillips is seeking to sell its share in the giant Corridor onshore gas block in Indonesia estimated to be worth more than $1.5 billion. However, given the scale of the project and uncertainties around its future, the US major could struggle to find a buyer.
Proposed new regulations signal that the Indonesian government appears to have recognised the importance of supporting carbon capture and storage (CCS) schemes. Such regulations will be crucial to encourage major companies, such as BP and Repsol, to invest in significant new upstream production in Indonesia.
Repsol is studying the potential of a giant geological carbon capture and storage project in Sakakemang in Indonesia.
German gas and engineering company Linde Group has expanded into Houston's energy corridor.